Our first investment

[Luis Barrios]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Providence.

Purchase price: $200,000
Cash invested: $10,000

2-family home in Providence. The 1st floor apartment is owner occupied and the 2nd floor apartment is currently a short-term rental listing.

What made you interested in investing in this type of deal?

We were first-time home owners who wanted to live mortgage free and take advantage of the growing short-term rental industry.

How did you find this deal and how did you negotiate it?

It was an MLS listing and purchased it with a realtor and traditional bank financing.

How did you finance this deal?

MLS

How did you add value to the deal?

Even thought the place was "newly renovated" we invested in some small finishing touches and completely furnished the 2nd floor apartment.

What was the outcome?

The 2nd floor apartment is currently a successful year-round short-term rental.

[Luis Barrios]

@Lexi Teifke, Thank you! We're planning to purchase another home and repeat the same model minus the MLS and bank financing, next.

@Zac Lester, So we make on average 2-3 times what we would make with a regular tenant here in Providence. We've averaged $2.1k/m minus expenses (utilities, furniture, fixes, food, etc.) but it covers our mortgage and bills (which was the plan). The next property will hopefully make more and our mortgage/bills will be less :)